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Stock/down payment advice desired

Discussion in 'Stocks & Investments' started by hotboatrod, Sep 29, 2019.

  1. Sep 30, 2019 at 10:39 AM
    #21
    hotboatrod

    hotboatrod [OP] Well-Known Member

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    Thank you!
     
  2. Sep 30, 2019 at 10:42 AM
    #22
    hotboatrod

    hotboatrod [OP] Well-Known Member

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    Holy crap! Look at that jump in rate from poverty to "middle class" (guessing), that's ridiculous. No wonder some people think the middle class is disappearing.
     
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  3. Sep 30, 2019 at 10:59 AM
    #23
    Gunshot-6A

    Gunshot-6A West Coast Randy

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    Yep. There's actually a good argument currently being made that the advice of paying into a retirement fund that taxes on takeout should be traded for a "tax on deposit" style account due to the fact that if you just look at the basic federal omnibus ins and outs, the tax base MUST go up to support the spend. If that's the case, it's better to pay in at a lower rate now (relatively lower :rolleyes:), and avoid a potentially more significant tax rate gouge on withdrawal when you need the money.
     
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  4. Sep 30, 2019 at 11:01 AM
    #24
    honda50r

    honda50r Not a Mallcrawler

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    Ah the joys of globalization. Becoming more like Europe every day
     
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  5. Sep 30, 2019 at 11:01 AM
    #25
    hotboatrod

    hotboatrod [OP] Well-Known Member

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    The jump at $168K is 8%. $50K (total income) plus stock sales of $100K puts it close to that $168K mark. Am I "reading" that outcome correctly or is it my wifes income (head of household) at $34K plus the $100K stock sale/down payment? If I could figure that out I could figure out a max down payment without getting myself into the low end of a new tax bracket, keep some stocks, and still get a low monthly payment for my area.

    I think the best way is the lowest down and save the most stocks that I can but that'll increase my monthly expenses for a roof over my families head which simply isn't an option for a disabled person that's lost all hope of getting a job again (and being able to keep that job).
     
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  6. Sep 30, 2019 at 11:10 AM
    #26
    Gunshot-6A

    Gunshot-6A West Coast Randy

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    If you two file your taxes together, then its the $50K sum plus the $100K stock sale. Short term cap gains are treated as income.

    If you and your wife file separately, it would be your ~$15K SSI and $100K stock sale. Her $34K would be a separate thing entirely.

    Edit: Your SSI isn't taxable per the IRS website, so it would jbe either 34+100 or just 100 depending on filing status.

    *I'm not a professional personal income tax guy, but I play one on TV.
     
  7. Sep 30, 2019 at 4:33 PM
    #27
    hotboatrod

    hotboatrod [OP] Well-Known Member

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    Ok, thank you.

    You're a comedian too, lol.

    It went up $1,501 today. Crazy cool.
     
  8. Oct 1, 2019 at 7:21 AM
    #28
    hotboatrod

    hotboatrod [OP] Well-Known Member

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    It's easy to see how people get sucked into stocks. It's addicting AF to watch. In 2 hours this morning I'm up around $4,300. No wonder some buy/sell/trade like crazy. That's how my friend Mike lost $250K, by his stock guy encouraging many trades. Of course the stock guy got paid for each trade.
     
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  9. Oct 1, 2019 at 7:29 AM
    #29
    theredofshaw

    theredofshaw Well-Known Member

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    you can use VA benefits for a construction loan as well (no money down). I see the Navy icon below your name and assuming you are a vet.
     
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  10. Oct 1, 2019 at 9:12 AM
    #30
    hotboatrod

    hotboatrod [OP] Well-Known Member

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    I am but no down increases the monthly payment out of my reach. I didn't know a VA loan could be had on a construction loan, thank you.
     
  11. Oct 1, 2019 at 1:13 PM
    #31
    theredofshaw

    theredofshaw Well-Known Member

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    Gotcha. May still be able to get lower rates with money down going VA route. That was the case for us on our current purchase in the works.
     
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  12. Oct 1, 2019 at 7:30 PM
    #32
    Boyk1182

    Boyk1182 Well-Known Member

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    Would you consider putting that $100k (I assume that’s what it is) in a dividend fund like SPHD, you’d get a dividend check for about $340 a month, every month? I don’t think being 100% in ROST is going to end well (regardless of how well it has done). Plus, it doesn’t pay you much unless you sell shares.

    A riskier (maybe, maybe not) strategy would be getting into some REITs, you could probably generate $1,000 a month of income with what you already have.

    You could build a safe portfolio with a mix of REITs and stocks that generates $500 a month with what you have. This is what I have done, I’m yielding about 4.5% and am about even with the market on gains this year.

    I am just suggesting generating income, since you already have a decent amount, which you can reinvest or just spend.

    Edit: I am assuming you can use a zero down VA loan, so suggesting you turn the stock holdings into something that generates income. I could see ROST getting cut in half real quick on some piece of news.
     
    Last edited: Oct 1, 2019
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  13. Oct 1, 2019 at 11:45 PM
    #33
    hotboatrod

    hotboatrod [OP] Well-Known Member

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    There is definitely a higher risk now because of tariff wars and the way the media plays their part. For now I'm happy with where its at.

    A small piece of my plan is generating a little money with solar power, a split AC system, and all electric appliances.

    I found out today papers can be filed to make a manufactured home benefit from the same tax codes as a stick built house however homeowners insurance and finance companies will not recognize a manufactured home as a stick home.
     
  14. Oct 1, 2019 at 11:56 PM
    #34
    2ski4life7

    2ski4life7 Well-Known Member

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    Only speaking to having stocks in one company. General practice by “most” is to sell stock especially if your employed by that company.

    Whether you put it on the down or into different stocks is another question. It entirely depends on your situation which includes your tax bracket, interest rate, pmi, etc.
     
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  15. Oct 2, 2019 at 8:18 AM
    #35
    hotboatrod

    hotboatrod [OP] Well-Known Member

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    It appears general practice is to constantly trade and watch the market obsessively, I've done the opposite and have had better luck than any friend/relative of mine that has stocks. One of my friends obsessively watches my stocks and is constantly saying stuff like "now's the time to sell", but it keeps making more money while I sit back and ignore it. I could easily create a list of people that I know that have lost a lot of money - all the while I sit back and completely ignore my stocks.

    I jinxed my stocks yesterday, bragging about being up. I lost $1K by the end of the day. It's basically free money to me that I didn't know I had for decades.

    As far as the second part of your comment, that's pretty much the point of my question in this original post so if you'd like to expand on that I'd really appreciate it.
     
  16. Oct 2, 2019 at 8:37 AM
    #36
    Boyk1182

    Boyk1182 Well-Known Member

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    Keep in mind that you only pay taxes on realized gains, not the total amount. Also, it looks like you'd pay the long-term tax rate, which is less. I see people saying you'd have to claim $100k in additional earnings, but that would only be the case if that was all gains. If you contributed $50k and have a 100% gain to take the value to $100k, you'd pay taxes on $50k.
     
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  17. Oct 2, 2019 at 8:45 AM
    #37
    2ski4life7

    2ski4life7 Well-Known Member

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    People like to trade stocks, it's just a form of gambling. You are better off investing in something like the S&P500 and not individual stocks. This combined with a balanced portfolio is something you should look into. Perhaps with limited knowledge a target date fund might be best, though pick a company that has low fees like vanguard, fidelity, or charles schwab. This question maybe better suited for a forum like bogleheads.org. A very good informational finance forum.

    I didn't read over all the thread but if you give a clearer picture people maybe able to help better. I see mention of disability insurance.

    Are you married? What is your filing status? What tax bracket are you in? Do you have state income tax? What other retirement do you have besides this individual stock? Your approved for a 250k loan I think I read? What is the interest rate? How old are you? When do you plan to retire/spouse retire?

    I would say it would be smarter to get rid of PMI and overall it sound like in your situation to have a house paid off sooner than later. A house paid off in retirement is nice.
     
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  18. Oct 2, 2019 at 9:01 AM
    #38
    hotboatrod

    hotboatrod [OP] Well-Known Member

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    If I understand your comment correctly it would mean that since I haven't contributed anything to my stock portfolio in decades then whatever I sell is a 100% gain. Of course you would have no way of knowing that because I haven't written it before now, but it could be very useful information to anyone that reads this in the future and trying to relate it to their own situation. Thank you.
     
  19. Oct 2, 2019 at 9:07 AM
    #39
    memario1214

    memario1214 Vivid Illumination Moderator Vendor

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    The question I still have is what kind of account are all of these stocks held in? Is this a taxable account, or something that has been tax sheltered up to this point?
     
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  20. Oct 2, 2019 at 9:25 AM
    #40
    hotboatrod

    hotboatrod [OP] Well-Known Member

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    I understand very little of your first paragraph.

    Married, filing jointly, wife is head of household I believe, wife makes $34K year, my disability benefits are $16K year, I live in California which does have additional state and city taxes, the stocks are my only retirement but the alternative is to move out of state and break up my family in the process which is strictly last resort to keep from becoming out priced where I live and becoming homeless, depending on stock increases to live off of seems ignorant to me, approved for a $250K loan with a $100K down, I would get that $100K down through stock sales, interest rate on the construction loan would be a variable 6% with a 7% cap, I'm 54 and my wife is 49, I might as well be considered retired already, my wife is like I used to be and a total workaholic and I'm not sure if she'll ever want to retire but of course reality/luck can easily change that as I found out.

    I apologize, I'm not sure I understand "get rid of PMI", does that mean get rid of house payments earlier vs later? I think it does... no house payment during retirement sounds like a fantasy but I'm positive many have done it including my adoptive parents, I don't see that happening while I sit on my disabled ass.

    Btw, I am not trying to complain whatsoever and am only trying to state fact. Being disabled/disability is what it is and I'll deal with it just fine overall, might be quite "a few" cusswords spoken though. Lmao
     
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